AI and Industrial Policy The Dynamic Duo that Rescued the U.S. Economy in 2023
AI and Strategic Policy Implementation Rescues U.S. Economy in 2023
I must admit, I’ve been one of those critics who have called out the Fed for being too slow in tackling inflation. There are others, however, who argue that the rate hikes have been too aggressive. But let me tell you, if I were in Fed Chairman Powell’s shoes, I’d be celebrating this holiday season. Because, my friends, it seems like the Fed has finally gotten it just right.
Now, let’s talk about the two big stories that are making waves. We’ve got the excitement surrounding artificial intelligence (AI), fueling optimism for the future and driving businesses to invest. This can be seen in the stock market, where the Magnificent Seven—Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta—have soared an incredible 75% in value this year. These tech giants are like the Avengers of the stock market, taking charge and lifting the market to new heights. Without them, the overall rise in the market barely scratches the surface.
But wait, there’s more! There’s another factor that deserves some attention—the remarkable surge in public investment. The Committee for Economic Development recently reported that the combination of the Bipartisan Infrastructure Law, the Chips Act, and the Inflation Reduction Act represents the largest cross-sector public investment since the New Deal. We’re talking about a whopping $2 trillion in new federal spending over the next decade. This is not just government spending for the sake of it, my friends. This is real investment that sparks business growth. It’s like pouring gasoline on a fire, igniting businesses to join the party. The U.S. has become a hotbed for global investment, with companies eyeing opportunities in infrastructure construction, green energy installations, and semiconductor manufacturing. Intel alone stands to gain billions in government subsidies, having already invested billions of its own in new chip plants. Talk about hitting the jackpot!
Now, I hate to be a party pooper, but there’s a dampener on this current wave of economic activity. It’s the U.S. government’s love for regulations. You see, all these incentives come with strings attached that might hinder their intended impact. It’s like being given a gift with a thousand conditions. And let’s not forget about the overreach in areas like antitrust. We’ve got bipartisan commentators raising red flags on that front. But let’s not dwell on the negatives just yet.
Because, my friends, at this very moment, the U.S. boasts the strongest economy in the world. Thanks to the marriage of new technology and government investment, this train is chugging along and shows no signs of stopping. It’s like a high-speed rollercoaster that keeps pushing forward, exhilarating and full of excitement.
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Now, let’s dive into some more news:
TOP NEWS
Gen-Z entrepreneurs
Young entrepreneurs are rewriting the playbook when it comes to startups. They’re breaking away from the traditional path and no longer see dropping out of college as a necessity. Colleges are now embracing these budding entrepreneurs, offering them space, networks, and cheap labor. It’s like a startup smorgasbord! One CEO even said, “It’s a uniquely good time to be investing in students.” Let’s nurture these young minds and watch them revolutionize the business world!
Conflicts of interest
With AI growing at lightning speed, conflicts of interest are becoming more common on the boards of major tech companies. For example, Microsoft board member Reid Hoffman is a co-founder of Inflection AI, a direct competitor to Microsoft’s own AI offerings. It’s like having a fox guard the henhouse! These conflicts of interest raise important questions about fairness and transparency. Let’s hope we find a fair playing field amidst this tangled web.
California’s housing crisis
California is in the midst of a housing crisis, and it’s not looking good. The root causes can be traced back to exclusionary zoning regulations, NIMBY politics, and a mindset that sees homes as financial assets rather than places to live. The result? California accounts for just 12% of the U.S. population but a staggering 22% of the nation’s homeless. It’s time we address this crisis head-on and provide affordable housing for all.
AROUND THE WATERCOOLER
Prepare for hellish travel this holiday season. After years of cutbacks and consolidation, can the air travel experience be fixed? Maria Aspan delves into the challenges and potential solutions. Buckle up, folks!
Indonesia’s ban on nickel ore exports was a surprising success for President Jokowi. Will his successors continue this path? Lionel Lim examines the potential impact.
Gen X, oh Gen X. You’ve got the largest wealth gap of any generation, and sadly, it looks like the American Dream of retirement could be a nightmare for you. Alicia Adamczyk sheds light on this troubling reality.
Nissan is ready to take on the world with electric vehicles made in China. Steve Mollman explores how automakers are responding to the rise of Chinese automotive prowess.
In a bold move for diversity, a top insurance CEO personally signs off on white male new hires. Orianna Rosa Royle raises eyebrows and sparks discussions about the importance of diversity and inclusion.
Get ready for an AI-fueled rollercoaster in the 2024 election. Alexei Oreskovic warns us of deepfakes and bots that could make our heads spin. Hold on tight, folks!
Before we wrap up, this edition of CEO Daily was curated by Nicholas Gordon. Thanks for joining us on this wild ride through the world of finance and economics. If you’ve got any thoughts, opinions, or even a funny joke, we’d love to hear from you!
Until next time, stay informed, stay curious, and may your pockets be forever full.
Alan Murray
[@alansmurray](https://twitter.com/alansmurray)
